In a recent announcement, major multi-brand hotel group Huazhu Group said that it has agreed to acquire all shares of Deutsche Hospitality. This acquisition would be done through its wholly owned subsidiary China Lodging Holding Singapore. This announcement comes as big news as the Frankfurt-based Deutsche Hospitality prepares to change hands. The German hotel group currently owns five well-known names under its umbrella — Steigenberger Hotels and Resorts, Maxx By Steigenberger, Jaz in the City, Intercity Hotel and Zleep Hotels.
The group’s new owner Huazhu is no stranger to the hospitality segment as it is considered to be among the most successful hotel companies in the world. It currently boasts an impressive portfolio of 5,000 hotels in over 400 cities, and a loyalty programme member base of over 139 million people. This acquisition will come as a great boost to Deutsche Hospitality’s already impressive presence of 118 hotels in 19 countries, across three continents. It will be instrumental in the group’s aggressive expansion plans. (In 2019, the 90-year-old hotel group said that it planned to reach 250 hotels by 2024). With consolidation being the most popular word in the hospitality industry, it is clear that this acquisition will help Deutsche Hospitality further enhance its competitive edge in Europe, middle east and Africa, where it is present.
A spokesperson from the executive board of Deutsche Hospitality comments, “Huazhu is one of the fastest growing companies in the world. We share the same values as Huazhu. We are both truly passionate about offering a high-quality experience to our customers, hence we are constantly aiming for improving our offering and services, and innovating our operations. Both Huazhu and Deutsche Hospitality have strong and recognised brands, which we will maintain, while further accelerating their growth. We are very excited to become part of the Huazhu Group.”
Huazhu already operates 18 brands across different market segments from affordable to luxury. It also happens to be the ninth largest hotel company in the world by room count and the fifth largest by market share.
Jenny Zhang, CEO, Huazhu says, “We are extremely impressed by the passionate and professional management team, its service levels and the excellent relationship with all relevant partners and stakeholders. We look forward to working with Deutsche Hospitality to expand the high-quality offering and further enhance the experience of guests staying in these hotels. Deutsche Hospitality and its brands will maintain their distinctive personality and individuality while benefiting from Huazhu’s leading technology, advanced innovation abilities, strong partnerships, loyalty programme, effective sales and marketing support, solid global distribution network and strong presence in the fast-growing Chinese market. I envision the merger of these two will create the foundation of a global hotel group that seamlessly combines European hospitality, German quality and Asian speed.”